The US Securities and Exchange Commission (SEC) has issued a subpoena to the CEO and the decentralized exchange SushiSwap.
The exchange’s chef announced the news and stated that they are cooperating with the SEC and will not be commenting on any ongoing legal investigations.
To cover legal costs related to investigations and litigation, the CEO proposed the creation of a “Sushi DAO Legal Defense Fund,” which would also provide $3 million in USDT for investors and an additional $1 million in reserve.
The CEO noted that this fund is necessary to protect key stakeholders and ensure business continuity.
The CEO also mentioned that the project needed $5 million to continue developing in a falling market, and the fees earned from trading commissions on the platform could help raise the necessary funds.
These fees are awarded to users who freeze their Sushi Governance Tokens and receive a bonus token called xSushi, which provides a bonus for all trades on the SushiSwap platform.
Earlier, the exchange took advice from Fenwick & West and separated the business into three independent legal entities, namely the Panama Foundation, the Panama Corporation, and the DAO Foundation.